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Black_prince [1.1K]
3 years ago
14

If the economy is in recession with high unemployment and output below potential GDP, then __________________ would cause the ec

onomy to return to its potential GDP
A. A tight monetary policy
B. Fewer loanable funds
C. A loose monetary polity
D. Higher interest rates
Business
1 answer:
crimeas [40]3 years ago
5 0

Answer:

option c is the correct answer: loose monetary policy

Explanation:

option c is the correct answer: loose monetary policy

monetary policy is refer to that policy in economic system of state which describe the supply and distribution of money  by government. Therefore if loose monetary policy applied then it should easy accessible to all people and directly boost the economy.

Loose monetary policy refer to the cutting of high interest rate which benefit to all people.

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